Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2012 (6) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (6) TMI 763 - HC - VAT and Sales TaxConstitutional validity of levy of luxury tax on cable TV operators challenged - Held that:- What is to be seen is that though the tax is a charge on the cable TV operators, the incidence of tax falls on the subscribers, i.e., ₹ 5 per month, which is probably two per cent of the monthly collection by the cable TV operators from the customers as average collection ranges from ₹ 200 to ₹ 250 per month. We therefore, do not find any constitutional infirmity in the levy of luxury tax on cable TV operators which they are bound to collect and remit from the subscribers at the rate of ₹ 5 per month, which is in addition to the service tax payable for the service provided by the cable TV operators. Retrospective amendment of 2010 exonerating cable TV operators with less than 7500 connections from liability is discriminatory and violative of article 14 of the Constitution of India because the State could not bring to our notice any distinction between those operators with less than 7500 connections and those with 7500 or above connections with the object of levy of luxury tax at the rate of ₹ 5 per month per person enjoying connection. We therefore, declare the levy of luxury tax on cable TV operators with above 7500 connections as discriminatory and violative of article 14 of the Constitution of India, and hence unconstitutional. Allow the WP(C) by declaring the impugned provisions of the Act authorizing levy and collection of luxury tax on cable TV operators including the petitioners with connections of 7500 or above as discriminatory and hence unconstitutional and invalid.
|